An Analysis of Marketing Strategies in the Hospitality Industry

This report provides a comprehensive overview of marketing within the hospitality industry. It begins by defining marketing in the context of the service sector, emphasizing the importance of branding and aligning strategies to attract consumers. The report delves into the marketing environment, examining the impact of economic, social, technological, and environmental factors on the hotel industry. It then explores the significance of consumer markets, the rationale for market segmentation, and the components of the marketing mix, including pricing policies and implementation of marketing plans. Furthermore, the report analyzes promotional strategies, including advertising campaigns, sales promotions, and public relations. It also assesses the suitability of different media for marketing services and highlights the relevance of marketing research within the service industry, concluding with insights on conducting marketing research for specific services. The report covers marketing concepts, strategies, and their impact on the hospitality industry.

Marketing In
Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
1.1 Concept of marketing in context of service industry........................................................1
1.2 Impact of marketing environment on Hotel industry.......................................................2
1.3 Relevance of consumer markets in hotel industry............................................................3
1.4 Rationale for developing different marketing segments..................................................3
2.2 The significance of components of the marketing mix to the industry............................4
4.3 Pricing Policy and strategies in context of hotel industry................................................5
4.4 The implementation of marketing Plan for appropriate service.......................................5
TASK B...........................................................................................................................................6
3.1 Measuring the Role of promotional mix .........................................................................6
3.2 Plan an advertising campaign for service industry..........................................................7
3.3 The role of sales promotion and public relations in promotional efforts.........................7
4.3 Analysing the suitability of different media for marketing services................................8
TASK C...........................................................................................................................................8
4.1 The relevance of marketing research to service industry.................................................8
4.2 Marketing research for particular service.........................................................................9
CONCLUSION................................................................................................................................9
REFERENCE'S..............................................................................................................................10

INTRODUCTION
Marketing refers to the process of introducing company product into the market.
Marketing in hospital industry refers to the technique that is used by service industry in order to
promote their products and services. Developing a significant and effective brand can be a path
for achieving success by hospitality industry. It is essential for service sector industry to develop
such brand that could be align with marketing strategy in order to attract more consumers. Uses
the marketing technique in order to promote their goods and services. Hospitality marketing is
defined as marketing efforts directed towards increase of revenue in the hospitality industry.
Marketing in hospitality industry seeks the way segments of hospitality sector such as
restaurants, hotels etc. Hospitality marketing takes a look at how segments of the hospitality
industry, such as hotels, restaurants, resorts and amusement parks, utilize marketing techniques
to promote their products or services. The study of hospitality marketing is essential as it helps
individual in developing understanding about the core concept. It also allow person to adopt
effective methods in order to promote services in effective manner.
The aim of the study is to develop understanding about the concept of marketing in
context of service sector. It intends to analyser the way hospitality marketing unit can
strategically organise plan in order to get effective results in the future.
TASK A
1.1 Concept of marketing in context of service industry
Marketing is refers to as the management procedure which identifies, anticipates and
supplies consumer requirement efficiently as well as Profitably. It can also be defined as the
procedure that includes planning and executing the conceptions, promotion, pricing and
distribution of ideas, products as well as services in order to exchange and satisfy individual or
business objectives. The basic concept of marketing include human needs, wants and demands.
Human needs can be defined as state of deprivation. It considered that marketing people do not
have contribution in creating needs, demands are the primary part of human life. This Concept
believes that needs are shaped by individual personality. Cultural and social factors have great
influence on person needs and demands. The service sector industry is the one of the oldest and
most successful industry in UK. Service is the branch of marketing. The service marketing is
considered as a device change in a way services has been defined. The unique characteristics is
required to be posses by marketing strategy of service sector as compared to marketing features

of other industries. Marketing of services include various difficult process. Service marketing
refers to the promotion of both business to consumer and business to business services.
Expanded marketing mix is tool is often used by marketer for promoting services that are being
offered by hotel industries. Marketing mix includes seven P's these are product, price, place,
promotion, people, process and physical evidence (Bahadir, Bharadwaj & Srivastava, 2015
Kotler identifies marketing as social and managerial process by which individuals and
groups obtain what they need and what they want through creating and exchanging products and
value with others. As hospitality industry is mostly made up of tourism and other experiential
services, a consistent brand identity is also very important. Marketers want to ensure that brand
recognition exists so that customers will use their services again and again. Repeat customers
bring in a sizeable portion of revenue, so marketing strategy must be split between maintaining
relationships with past customers while seeking out new ones. Marketing is a concept which
states that the organisation should analyse the requirement of their customers and then make
decision to satisfy their demand. There are various concepts in marketing these are:
Product concept- According to this approach, the consumer prefer to buy good quality products
and they get attracted towards innovative items. So the cited venture is required to facilitate
innovation and focus on developing product. As this activity will help firm in attracting more
number of customer and increasing sale.
Selling concept-According to this approach, the consumer get much influenced by advertisement
and selling concept of business entity. Effective marketing strategy has been adopted by cited
organisation in order to encourage people to buy their products.
Marketing concept-this approach is based on pull strategy and emphasizes on consumer needs as
well as demands. According to this though the purpose of marketing is to fulfil customer desire
and help organisation in enhancing brand image.
Social marketing concept-This ideas or strategy assist business entity in developing as well as
maintaining healthy relationship with its clients. This provided customer an ease to asses the
information about the various or new product or services offered by business entity.
The two different approaches argue on service marketing. The contemporary study of
service marketing states that limit between goods and services that has prevailed throughout 20th
century was unreal and has accepted that service can be promoted. On the other hand S-d logic
framework states that marketers have understanding about value -creation and they are changing

the role of customer in delivery of services (Meaning and function of marketing management.
2010)
Service marketing aims at identifying the way to make differentiate service from goods.
The traditional approach of service marketing indicates that service marketing has limited scope.
It states that services that has been generated through production does not contribute to wealth.
The traditional concept of service marketing define it as an activity that includes
interactive process in order to create benefits that are desired by consumers.
The modern concept of marketing have focus on making use of internet and technology
in order to promote services. The various tools that are being used by modern framework include
societal marketing, E- commerce etc.
The modern concept of services marketing is based on identifying the uniqueness of all
healthcare services (Barrett & Weinstein,2015)Relationship marketing is significant factor of
customer relationship management which originates from on term customer engagement.
Hospitality sector Organisation focuses on gaining customer loyalty rather than emphasizing on
short term goals.
1.2 Impact of marketing environment on Hotel industry
Marketing environment is defined as factors and forces that have great effect on service
sector organisation ability to provide effective service to customer and maintain healthy
relationship with their client. The various elements of marketing are political, legal, social ,
economical, technological and environmental factors. Some social factors are trends, population ,
value, belief, culture etc. Economic factors are economic condition of the country, economic
system, inflation, individual income etc. Economic factors have great impact on financial
stability of firm. These factors have great effect on services and sustainability of service sector.
Environmental factors are climatic condition , natural calamities , competition etc. These factors
have great impact on quality of services. Technological factors have great effect on productivity
and operational activities.
Economic factors:The decrease in exchange rate has created transactional benefit for
organisation. On the other hand A growth in economy has positive impact on financial
Performance of business unit. Fair distribution of income among individual has allowed business
enterprise to generate revenue and increase profit margins. On the other hand increase in

exchange rate has great impact on buying and selling power of company dealing in hospitality
industry
Social factors-Increase in population in the country has enabled organisations to increase its sale
and market share. On the other hand change in preferences and trend of society has great impact
on demand for organisation product. For instance increase in demand for shopping has lead to
decrease in demand for enterprise services.
Technology factor- These elements has provided business entity an opportunity to improve their
quality of services and develop new services. This has helped Organisation in attracting more
number of customer. It has allowed business unit to retain long term relationship with their
client and retaining old customers
Environmental: Th internal and the external both environment affect the company performance.
The main purpose of organization is to maintain the product quality and give the efficient and
effective services. The business unit is wrapped up for the intake of energy and utilizing of green
house gases. This is positive impact for the firm to comply with the new and e environmental
laws.
Legal: There are number of lows that is affect the company because this firm has a lot of
providing various services.
Micro environmental forces are those elements inside the hotel that have great effect on
business performance. Micro Environment factors that have great impact on Hotel industry are
customers, employees, distribution channel, suppliers, investors, competitors, media etc.. The
customers are the person who the customers are B2B or B2C, local or international, etc.
Customers – they are the important stakeholder those who enables organisation to generate
revenue and increase profitability. Consumers have great impact on marketing practices and
strategies adopted by firm. Resources are the important elements have great effect on marketing
decision. These variables also have impact on pricing of products and services. The cited
organisation needs to develop their focus on providing satisfaction to customers and satisfying
them.
Competitors- these people have great effect on business performance and growth. It also has
great impact on business plans, policies, strategies and decision. As due to ineffective policies or
strategies there are many chances that the client may shift to other brand. It is essential for cited
venture to conduct market research as this activity will assist business entity in identifying the

strategy and competition level. This activity will help enterprise in developing suitable plans for
winning over competitors.
Suppliers-These are the important people. As they provide raw material and essential products to
firm. Su pliers action have great impact on productivity and operational activity. It is required by
cited venture to develop healthy relationship with supplier. As this activity will assist business
entity in increasing productivity and improving working efeciency.
Swot analysis can be conducted by service sector industry in order to analyse the impact
of marketing environment on their services.
The swot analysis will assist marketer personnel in hotel industry in order to develop
their focus on major issues. This will enable marketing manager in making modification in
various marketing strategy and enable them to make effective marketing plan.
Strength: The service sector industry has
developed impressive brand image.
The company brand has gained the attraction
of large number of consumers.
It has good relationship with employees that
will help organisation in promotions their
products and services.
The firm has approximately 540 hotels in more
than 78 countries. It has strong supply chain
network.
Organisation has strong transportation network
which enable them to deliver quick service to
their customers.
The major strength of service sector is that
they have been in industries for 93 years it has
enabled them to gain competitive advantage .
It high market growth.
Weaknesses:
The company has limited market share.
The operation of the industry have major affect
of global environment .This is due to variation
in government policies and procedures related
to industry.
Opportunities:It has high potential to grow in
international market.
As the company has well known brand and it
Threats:The business unit has threat from
international brand .Entry of international
brand have great impact on the marketing

has impressive reputation in market it has
opportunity to enter into new market.
The firm can do experiments with their
services in order to attract more number of
customers.
It has advantage of using technology and
digitalisation as a tool for promoting their
services.
decision and strategy of Hotel industry.
Increase in competition.
Slow and steady growth.
Economic and political instability in the
country may create barrier for firm to provide
services to customer belonging to particular
region.
1.3 Relevance of consumer markets in hotel industry
Consumer market refer to as producing and selling product and services to individual
buyer. The consumer market pertains to buyers who purchase goods and services for
consumption rather than resale. However, not all consumers are alike in their tastes, preferences
and buying habits due to different characteristics that can distinguish certain consumers from
others. Consumer market is very important in the hospitality industry as it is the structure that
allows us to make purchases of goods and services. In consumer market decisions are dependent
on the way customers are involved in buying of goods and services. There rae three decision
making procedure these are limited , extensive and routine. The decision process may vary from
time to time ,this also depend of the type of customer and the investment made. Development of
long term relationship with customer help business entity in creating strong, emotional client
connection to brand. The consumer behave irrationally. The consumer market is important as
it assists organisation in increasing profitability, sales and fostering growth. Hospitality
marketing refers to the social and managerial procedure by which people are able to fulfil their
need and demands by exchanging products and services in order to generate value with each
others. Marketing process has become the significant part of hotel industry. The hotel industry is
totally depended on marketing personnel in order to promote their product and services (Chen &
et.al.,2015)
In case of social gathering, group occasions, wedding and receptions, hotel industry are
being given the prime importance to host the events. Whether the occasion is being organised for
business meeting or for other purpose the hospitality sectors are always been benefited over other
sectors of service industries. Both space and food as well as beverages are being provided by

hotel industry in order to fulfil the demand of their customers. It has been identified that the
hospitality sector is growing very rapidly as compared to other sectors. Steady growth of the
industries may occur due to economic impact. The reason for steady growth may be due to
increase in price of gas cylinders and raw food item that may lead to low profitability for firm
(Homburg, Jozić & Kuehnl, 2015)Some factors that affect consumer behaviour are :
Culture-Culture is a very complex belief of human behaviour it includes the human society, the
roles that the society plays, the behaviour of the society, its values customs and traditions. This is
the very significant factor that influence consumer behaviour.
Social factors- These factors include Family , reference group, role and status in society.
Personal factors -These factors include lifestyle, age, economic condition, income, personality
etc.
Psychological factors- Motivation, perception , learning, attitude , belief etc.
1.4 Rationale for developing different marketing segments
Market segmentation refers to the procedure of diving a market into different customer
segments. Market segmentation is essential because the customers do not always belongs to
homogeneous group. Market segmentation is the effective and major marketing strategy that
aims to divide market into different segments. The marketing sedimentation aims at fulfilling the
needs and demands of wide range of customers in the market. Segmentation is the basic for
establishing targets and creating effective plans to achieve goals. It assists service sector industry
in analysing the market segment and enables business unit to make accurate decisions.
The market segments assist organisation in developing targeted marketing plan for
specific segment in order to allow hotel industry to reach particular customer group. And to
provide them with specialised services in professional manner. It helps enterprise in developing
their focus on particular consumer groups. The market segmentation support firm in creating
their own niche products and enable them to attract more number of consumers (Jaramillo &
Spector,2015)
Segmentation strategy intends to assist firm in gaining customer loyalty. It provides
service sector an opportunity to do innovation in their customer services. And encourages
organisation to attract new clients by offering them premium services.

The consumers change their preference and choice according to trend. The marketing
segmentation allow firm to identify current trends and develop services according to the present
need of people in the market. Hence, It helps business unit in developing and maintaining
healthy relationship with their customers.
It facilitates effective communication between consumers and organisation. It supports
business unit in demonstrating the benefits of various services that are being delivered by
organisation in market (Kubacki & et.al., 2015)
The various basis of marketing segmentation are :
Demographic:Demographic factors include Quantifiable population characteristics. (e.g. age,
gender, income, education, socio-economic status, family size or situation).
Geographic:This bases include Physical location or region
Geo demographic-It is the Combination of geographic & demographic bases.
Behavioural-this base include Purchasing, consumption or usage behaviour. (e.g. Needs-based,
benefit-sought, usage occasion, purchase frequency, customer loyalty, buyer readiness)
Importance of market segmentation is that it allows firm to have focus on particular target group
and provides organisation an opportunity to fulfil its objective of customer satisfaction. It enables
firm to reach wide range of customer easily.
2.2 The significance of components of the marketing mix to the industry
It is very essential for hospitality industry to develop effective marketing mix in order to
achieve success and growth. Marketing mix assist hotel industry in achieving effective outcome
of various marketing activities. Various marketing components are being use by marketing
manager in service sector industry in order to target specific customer or group. It is very
important for hotel industry to adopt accurate and effective strategies that also include pricing
plan in order to attract more number of guests (Kumar,2016)
The hotel industry do not provide consistent discounts and offer to their clients that have
great influence on customer behaviour towards firm. The hospitality industry is required to have
focus on three basic elements of marketing mix these are pre counter, post counter and
encounter. They are need to emphasises on these components because of inseparable and
imperishable nature of services provided by hospital industry.
The elements such as place : it helps organisation to reach customer and provides services
to their customer. This enables business unit in maintaining healthy relationship with customer.

Promotion: It provides hotel industry a platform to interact with clients in order to identify their
needs and demands. It provides company an opportunity to built their brand imager by catering
the requirement of their clients in the market. It allows them to demonstrate the benefit of
various services provided by hotel industry (Kumar,2015)
Price:The price factor assist hospitality industry in developing effective pricing strategy and
supports business unit in delivering their services at reasonable price. It allows firm to
differentiate their products in terms of price from their competitors. Marketing mix provides
organisation an opportunity to gain competitive advantage.
Service and facilities-This will help business unit in attracting more number of customer. It
provides hotel industry an opportunity to provide professional and innovate customer services.
4.3 Pricing Policy and strategies in context of hotel industry
It is very essential for hotel industry to adopt effective pricing policy and strategies as
these may have great effect on the profitability of firm. One of the most effective pricing strategy
that can be adopted by hospitality industry is price of season ability. This pricing policies states
that it is required by organisation to establish prices according to the seasons of the year when
most of the travellers visit the country. The aim of this strategy in to increase income in every
season. This plan will assist hotel industry in motivating visitor to visit country in every season.
The other strategy that can be used by hospitality industry for pricing their services is
parity policies. This strategy intends to establish same price that has been charged by its
competitors. But it also intends to provide additional services in same price in order to make
their services different and unique from the services that are being provided by their competitor
(Loe & Ferrell,2015)
Cost plus pricing strategy-n which the selling price is determined by adding a specific dollar
amount markup to a product's unit cost.
Break even-It is the act of setting price at of point no gain and no loss. The organisation intends
to earn zero profit from sale of product and services.
Value based- Value based pricing strategy establish prices primarily, but not exclusively,
according to the estimated value of a product or service to the customer rather than according to
the cost of the product or historical prices.
Competition based pricing strategy-This strategy states that the firm should analyse its
competitor pricing strategy and should charge price accordingly.

4.4 The implementation of marketing Plan for appropriate service
A marketing plan is refers to as a marketing plan is a comprehensive document or
blueprint that outlines a business advertising and marketing efforts for the coming year. It
describes business activities involved in accomplishing specific marketing objectives within a set
time frame. The objective of marketing strategy of service industry is to communicate and
demonstrate the benefit of various services that are being provided by industry. Marketing
strategy of service sector have focus on their guest in order to provide them with quality and
valuable services. This marketing strategy will help firm enhancing their brand image,
maintaining long term relationship with clients and increasing market share( McDonald,
M.A.L.C.O.L.M.,2016).
Value proposition:The best, personalized and valuable services are being delivered by service
sector to its customers. They provide various room facilities, internet services, etc. The
organisation provides easy reach to meeting rooms with both audio and visual technology
requirement in order to fulfil the need of their clients.
Critical issues:The strength of service sector is that it consists of flat structure, skilled and
talented workforce, differentiation strategy etc. The weaknesses of the organisation is that lack of
effective communication strategy, high employer turnover rate and great influence of season on
business activities. Critical issues faced by the enterprise in differentiating their product from
competitors. The other problem that is identified is that the business unit is enabled to attract new
market sectors (Pavlou & Stewart,2015).
Financial objective:The Financial objective of hotel industry is to increase their profit margin
and to enhance their growth rate within minimum budget. The other financial aim is to raise
corporate rates in order to present the high rate of return that will assist firm in gaining
confidence.
Marketing objective:The marketing objective of service industry is to promote their products and
services to wide range of customers. The other purpose of marketing strategy ion to demonstrate
the positive hotel experiences that is gained by guest. It intends to achieve growth target within
set time and budget.
Targeting marketing strategy:This includes establishing target that is to be achieve by marketing
strategy. The targeting marketing strategy emphasizes on professional visitors.